Provides that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and the arbitrator's findings of fact and conclusions of law.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8421
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to arbi-
tration awards in consumer and employment disputes
PURPOSE:
This bill would require arbitrators who decide consumer or employment-
related disputes to set forth the basis for their awards.
SUMMARY OF PROVISIONS:
Section one of the bill would amend section 7507 of the civil practice
law and rules to require arbitrators who decide consumer or employment-
related disputes to set forth the basis for their awards.
Section two of the bill sets the effective date.
JUSTIFICATION:
It is well-settled that arbitrators are not required to explain or
justify their awards. E.g. Colletti v. Mesh, 23 AD2d 245 (1st Dept),
affd 17 NY2d 460 (1965). In recent years, there has been a proliferation
of arbitration hearings in consumer and employment matters. It is
particularly impbrtant for consumers and employees to know the basis for
awards rendered in hearings in which they have participated. This bill
does not purport to be a burden upon arbitrators. Or otherwise amelio-
rate any of the benefits of arbitration, such as speed and efficiency of
adjudication. Still, it is difficult, if not impossible for a losing
arbitration participant to know whether any grounds exist to vacate the
arbitration award pursuant to CPLR 7511 if the basis for the award
remains unknown. This bill was modeled upon 11 NYCRR 65-4.5(s) which
has worked well for many years in providing automobile insureds and
insurers with the same basic information about arbitration awards in
matters brought pursuant to Article 51 of the Insurance Law (no fault
arbitrations).
PRIOR LEGISLATIVE HISTORY:
2023-24 - A.3450 - Referred to Judiciary/S.4107 - Referred to Judiciary
2021-22 - A.2193 - Passed Assembly/S.4914 - Referred to Judiciary
2019-20 - A.7572 - Passed Assembly/S.2630 - Referred to Judiciary
2017-2018 - A.6372 - Passed Assembly / S.6225 - Referred to Judiciary
2015-2016 - A.10090-A - Referred to Judiciary / S.8040 - Referred to
Judiciary
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law.
STATE OF NEW YORK
________________________________________________________________________
8421
2025-2026 Regular Sessions
IN ASSEMBLY
May 15, 2025
___________
Introduced by M. of A. DINOWITZ, SEAWRIGHT -- read once and referred to
the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to arbi-
tration awards in consumer and employment disputes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 7507 of the civil practice law and rules, as
2 amended by chapter 952 of the laws of 1981, is amended to read as
3 follows:
4 § 7507. Award; form; time; delivery. (a) Except as provided in section
5 7508, the award shall be in writing, signed and affirmed by the arbitra-
6 tor making it within the time fixed by the agreement, or, if the time is
7 not fixed, within such time as the court orders.
8 (b) In a matter involving a consumer dispute, pursuant to section
9 three hundred ninety-nine-c of the general business law, or an employ-
10 ment dispute between an employer and employee, as defined in section
11 three of the Fair Labor Standards Act of 1938 (29 U.S.C. § 203), where
12 arbitration was held pursuant to a contract, the award shall state the
13 issues in dispute and shall contain the arbitrator's findings of fact
14 and conclusions of law. Such award shall contain a decision on all
15 issues submitted to the arbitrator. The provisions of this subdivision
16 shall not apply to agreements negotiated with any labor union through
17 collective bargaining.
18 (c) The parties may in writing extend the time either before or after
19 its expiration. A party waives the objection that an award was not made
20 within the time required unless [he] such party notifies the arbitrator
21 in writing of [his] their objection prior to the delivery of the award
22 to [him] such party.
23 (d) The arbitrator shall deliver a copy of the award to each party in
24 the manner provided in the agreement, or, if no provision is so made,
25 personally or by registered or certified mail, return receipt requested.
26 § 2. This act shall take effect on the one hundred eightieth day after
27 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07518-01-5
